The Neelam Linens and Garments IPO has opened to the public with a promising start, reaching a 1.30x subscription on its very first day. As one of the smaller SME IPOs, this offering is attracting attention in the textile manufacturing space. Neelam Linens and Garments (India) Limited, established in 2010, manufactures and exports high-end soft home fashion products, including bedsheets, pillow covers, towels, garments, and more. This book-built issue aims to raise ₹13.00 crores through the offering of 54.18 lakh shares at a price band of ₹20 to ₹24 per share.

The IPO opened on November 8, 2024, and will close on November 12, 2024, with a listing date scheduled for November 18, 2024, on NSE SME. This IPO's price band gives investors an opportunity to buy into a business with strong international and domestic clientele, including well-known names like Tuesday Morning, TJX, Amazon, and Meesho.

Key Details of the IPO:

• IPO Size: ₹13.00 crores
• Fresh Issue: 54.18 lakh shares
• Price Band: ₹20 to ₹24 per share
• Minimum Lot Size: 6,000 shares (₹144,000 for retail investors)
• HNI Lot Size: 12,000 shares (₹288,000)
• IPO Opening Date: November 8, 2024
• IPO Closing Date: November 12, 2024
• Listing Date: November 18, 2024
• Tentative Allotment Date: November 13, 2024

The minimum investment for retail investors is ₹144,000, while High Net-Worth Individuals (HNIs) must apply for a minimum of 12,000 shares, amounting to ₹288,000. The market maker for the IPO is Globalworth Securities, and the registrar is Purva Sharegistry India Pvt Ltd.

The company caters to both international markets, including the USA and Australia, and domestic clients like Vijay Sales and Amazon. Known for offering high-thread-count bedding and towel products, Neelam Linens and Garments also operates in the trading license market, buying and selling licenses to importers.

Competitive Strengths:

• The company purchases high-quality thread count fabric at lower prices, giving it a competitive edge in the cost-sensitive market.
• Experienced promoters with a dedicated workforce of 56 employees (8 permanent and 48 on contract) provide operational stability.

Subscription and Market Sentiment:

On Day 1, the IPO garnered 1.30x subscription, indicating good interest from investors. The strong subscription rate reflects confidence in the company's business model, especially given its established presence in both domestic and international markets. As the IPO continues, it will be crucial to watch the subscription trends to see if the momentum continues through to the closing date.

This IPO presents an opportunity to invest in a textile manufacturing company with a well-established market presence, diverse client base, and a robust business model. With strong demand seen on Day 1, Neelam Linens and Garments could prove to be an attractive opportunity for investors looking to enter the SME IPO market.

The Upcoming IPOs in this week and coming weeks are Mangal Compusolution, Onyx Biotec, Rosmerta Digital, NTPC Green, Avanse Financial and Black Buck.

The Current active IPO are  Swiggy, ACME Solar Holdings, Niva Bupa Health and Neelam Lines and Garments.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.